Info Edge lost Rs 532 cr from its investment in Rahul Yadav's 4B Networks: Report

by IANS |



New Delhi, Nov 8 (IANS) Tech and Internet company Info Edge lost around Rs 532 crore after writing off its investment in Rahul Bhoopsingh Yadav’s Broker Network (4B Networks Private Limited), according to reports.


While Info Edge’s cash infusion in Broker Network was Rs 288 crore, the rest is the notional loss from a higher valuation that the startup had reached. 


The proptech startup had a valuation of Rs 719 crore before Info Edge had to write down its entire investment, reports Moneycontrol.


The company impaired the amount considering current state of affairs and other relevant factors, including excessive cash burn, prevailing liquidity issues and significant uncertainty towards funding options, reports Entrackr.


Info Edge has a 59 percent stake in 4B Networks.


Following a complaint by Info Edge, the proprietors of Naukri.com, the Economic Offences Wing (EOW) is now probing the case pertaining to allegedly transferring a part of the investors’ monies to another company where Rahul’s wife Karishma Yadav is the co-owner and a CEO.


Info Edge had invested a total of Rs 276-crore in Yadav’s company 4B Networks Pvt Ltd., and given him a Rs 12-crore loan, totalling to Rs 288-crore, and has claimed that the money was allegedly siphoned off through illegal means.


The complaint accused Yadav of misappropriating the funds in different forms like shady transactions, loans to some former staffers, heavy deposit for an office allegedly routed via his wife’s company, and vendors purportedly transferring payments from 4B Networks to other companies of the family.


Earlier in August, the EOW had booked Yadav and his associate Sanjay Saini following a complaint lodged by Co-Founder of Interspace Communications Pvt Ltd, Vikas Omprakash Nowal, for allegedly cheating him of a total of Rs 10-crore.


Later, the EOW had raided the offices and homes of Yadav-Saini duo, a Look Out Circular was issued against Yadav, while a Mumbai Court rejected his anticipatory bail plea in end-August.


Meanwhile, Info Edge’s revenue from operations grew 47.6 per cent to Rs 2,345 crore during the fiscal year ending March 2023 in contrast to Rs 1,589 crore in FY22, according to the company’s consolidated annual financial statements.



Latest News
Sensex closes lower, midcap and smallcap outshine largecap stocks Wed, Jul 24, 2024, 05:04 PM
SC mulls formation of expert panel to resolve grievances of protesting farmers Wed, Jul 24, 2024, 04:59 PM
Will further strengthen our friendship with India: Bhutanese PM after meeting Gautam Adani Wed, Jul 24, 2024, 04:48 PM
More lung cell types infected by SARS-CoV-2 than previously thought: Study Wed, Jul 24, 2024, 04:36 PM
Telangana MLA performs two emergency C-sections in flood-hit Bhadrachalam Wed, Jul 24, 2024, 04:27 PM
Paris Olympics: 'I am attacked because I am black', German flag bearer Dennis Schroder speaks on racism Wed, Jul 24, 2024, 04:18 PM
Typhoon Gaemi pounds Philippines, killing at least eight Wed, Jul 24, 2024, 04:11 PM
Budget session: Odisha Assembly witnesses repeated adjournments on third day Wed, Jul 24, 2024, 04:09 PM
Centre lacks 'fairness', no point attending NITI Ayog meeting: Shivakumar Wed, Jul 24, 2024, 03:49 PM
Italian Air Force jet crashes during Ex Pitch Black in Australia, pilot safe Wed, Jul 24, 2024, 03:41 PM
'Upset' BJP minister meets Madhya Pradesh CM, party says all is well Wed, Jul 24, 2024, 03:27 PM
Centre to build 5,833 new EV charging stations along national highways Wed, Jul 24, 2024, 03:24 PM
Budget 2024 sets new precedent for prioritising job creation, skilling: Jayant Chaudhary Wed, Jul 24, 2024, 03:12 PM
South Korean space agency to spend 380.8 billion won to build 3 industrial parks Wed, Jul 24, 2024, 03:05 PM
Expressway projects to boost economy of 20 districts in Bihar Wed, Jul 24, 2024, 03:02 PM